Research On The Impacts Of China’s Interest On China Concept Stock Listed In The U.S.

With the continuous development of China’s economy,more and more international investors want to invest in Chinese stocks to share the dividend brought about by China’s economic growth.But because we have more stringent restrictions on capital flows,only a small number of internationally renowned financial institutions can obtain QFII quota or through the B-share market and other limited channels to invest in China’s stock market,and a large number of multinational financial institutions can not directly invest in China’s stock market.However,Chinese companies listed on the US stock market offer a large number of optional targets for financial institutions that want to participate in the Chinese stock market.Therefore,it is very important to study the pricing problem of Chinese companies stocks listed in the United States(Referred to as china concept stocks),which is of great practical significance for the construction of the portfolio.At the same time,in the traditional literature research on the impact of monetary policy on the stock market and the transfer mechanism is a hot issue of asset pricing theory and empirical research.But the existing literature has less discuss on the effect of China’s domestic monetary policy fluctuations on the US-listed Chinese companies stocks(referred to as china concept stocks).Therefore,this paper intends to explore the impact of China’s monetary policy changes on china concept stocks,and strive to make up for the blank of the corresponding pricing theory.In this paper,we found that: First,China’s interest rate adjustment has a significant negative impact on the New York Stock Exchange listed stocks,but the impact on the Nasdaq Stock Exchange listed stocks is not obvious.Second,there is a strong non-linear effect on the impact of interest rate rise or decline on the stock market,that is,the impact of interest rate decline on the china concert stocks is significant,but the interest rate rise can not affect the stock price fluctuations,and this conclusion will help explain why the interest rate fluctuations on the Nasdaq market stocks is not significant.Third,there is a strong negative correlation between interest rate adjustment in bull market and bear market,the interest rate fluctuation on china concept stocks in the bull market has a stronger positive effect than a bear market(bear market has a stronger negative correlation than bull market).